ISLAMABAD/ KARACHI: Pakistan has submitted its response to the European Union's list of issues and follow-up questions for the renewal of its Generalized System of Preferences Plus (GSP+) status, with the country’s commerce chief saying he is “confident” that Islamabad would be successful in the fourth biennial review of the special trade incentive.
This April, the European Parliament moved a resolution against Pakistan, seeking an immediate review of its eligibility for GSP+ status over what it called violence and discrimination against religious minorities and other vulnerable groups.
The development took place after the Tehreek-e-Labbaik Pakistan (TLP) religious party resorted to violent protests, demanding the expulsion of the French ambassador to Islamabad over anti-Islam cartoons published in France.
The GSP+ is a special trade arrangement offered to developing economies by European nations in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance. Institutionalized in 1971, the framework removes or reduces import duties on products exported to Europe from low-income countries.
Pakistan, which is part of a current GSP+ scheme set to end in December 2023, submitted its responses to the EU's list of issues and follow-up questions on September 15.
"EU is our biggest export partner and we have excellent relations with all EU member states. If you see our exports country-wise, EU member countries will be in the top ten export destinations. As the 4th Biennial Review of GSP Plus incentive is currently underway, I am confident that due to the positive initiatives by the government it will be successfully completed," Pakistani prime minister’s aide on commerce Abdul Razak Dawood said in a statement.
"The five new international conventions in the new GSP scheme are in line with government’s priorities and we are already taking steps to ensure labour rights, child rights and rights of the persons with disabilities. I can assure that the Government of Pakistan is already committed to the cause."
The legislative proposal for the new GSP scheme will now be presented to the European Council and Parliament for detailed deliberations before adoption. Once the European Council and Parliament adopt the new scheme, Pakistan, like any other beneficiary country of the GSP scheme, will have to file a new application for the new GSP scheme and ratify and implement 32 International Conventions.
Speaking to Arab News earlier, Dawood said Pakistan would have to file a fresh application for the new scheme like other beneficiary countries of the GSP scheme.
“Pakistani products … have duty free access in all 27 member states of the European Union since January 1, 2014, until December 31, 2023,” he said, adding that the EU periodically reviewed the commitment of all beneficiary nations with GSP+ status to the signed international conventions.
Dawood said all nations, including Pakistan, would be required to ratify and implement the five new international conventions, in addition to the previous 27 international covenants, to benefit from a new program to be adopted by the EU from 2024 to 2036.
The EU office in Islamabad said in a statement Pakistan was the largest beneficiary of the current GSP+ program but the European Commission was continuously monitoring progress made by beneficiary nations like Pakistan in implementing international conventions.
“In the last monitoring reports, some progress has been positively highlighted, while concerns have been raised regarding child labor, torture, media freedom and access to justice, among others,” the statement maintained.
European Union Ambassador to Pakistan Androulla Kaminara said in a statement last month that Pakistan’s exports to Europe had increased by 60 percent since it was granted GSP+ status in 2014 but “in order to maintain the trade preferences under GSP Plus beyond 2023, Pakistan will have to redouble its efforts to turn the international conventions it signed into reality on the ground.”
“To make the case to be eligible under the new GSP Plus system, Pakistan, like any other potential beneficiary countries,” Kaminara said, “will have to demonstrate tangible progress to convince EU parliamentarians and member state governments.”
